Payments Blog

PayPal is one of the most popular payment processors in the online payments industry. Since this platform is used by so many merchants, it’s inevitable that some, if not most, of these merchants will encounter chargebacks. Dealing with chargebacks is often a costly process for these merchants, but there are various ways to combat these issues, and to eliminate chargebacks before they can do serious damage.

For merchants that use PayPal to process their payments, the vast majority of transactions occur online. There is an inherent uncertainty and lack of familiarity between the merchant and the consumer in online transactions. Merchants should provide clear, succinct contact information for consumers on their website. This way, if there is a problem or a dispute, the consumer can easily contact the merchant, instead of filing a chargeback with their issuing bank.

PayPal users also have a unique resource at their disposal: The PayPal Resolution Center. If a consumer is resolute in their desire to file a chargeback, the merchant should encourage them to open a dispute in the resolution center. For both parties, this alternative provides an opportunity to work out the dispute in a peaceful and agreeable manner.

It’s important for merchants to maintain an open line of communication with their consumers, so that those consumers will feel comfortable confronting them with any potential issues. Most of the time, both sides want a quick, easy resolution to the chargeback problem. But in cases where the consumer’s card has been compromised by a criminal, talking through the problem will not work.

Merchants need to stop fraud and prevent chargebacks. By using Cardinal Consumer Authentication, merchants can limit fraud, and prevent chargebacks. Connect with us to learn more!